Legal Remedies Of Pure Economic Loss In Product Liability

The remedy of pure economic loss is a difficulty in tort law system. Obviously, there isn’t amature approach to deal with its product liability in our country. The field of product liability canbe divided into four types: product damage, alternative costs, profit loss and loss liability. Amongthem, the product damage and its according profit loss are two commonest types of pure economicloss and are of most research significance. As to the comparison research method, there is nocountry that provides legal remedies for all pure economic loss and there is also no state thatdoesn’t provide any legal remedies for all pure economic loss. Based on the worry of open“floodgates”, consideration of legal interests priority and other policy factors, the pure economicloss of product liability is basically excluded from tort remedies and then widely brought intocontract remedies. Extreme measures will always be attached to disadvantages in laterdevelopment. Thus, adhering to the rule of the pure economic loss without consideration of the truestate of the case will always be overcorrect with many institutional defects. Meanwhile, contractlaw remedies alone also will cause ineffective remedies. In this regard, countries all over the worldstrengthen the protection of pure economic loss in the product liability from the breakthrough oftort remedies and the expansion of contract in its own legal system. It has beneficial enlightenmentto our country. The author considers that our country seldom applies contract remedies to solvepure economic loss at present, but the use of tort remedies is slightly overflow in the legislative andjudicial practice. Under this circumstance, firstly, we should change the practice of the tort andcontract litigation, taking priority to contract remedies, that is, if it can be applied to contractremedies, we will not apply tort remedies. Secondly, apart from the contract remedies, wegenerally apply standard filtering mechanism without the expense of the property except in majordangerous situations where tort remedies are applicative. At last, we should comprehensivelyconsider the evaluation factors of producer’s duty of care to form a dynamic mechanism to balancetort remedies.